California Organized Investment Network (COIN) Is a Collaborative Effort Between the California Department of Insurance, the Insurance Industry, Community Affordable Housing and Economic Development Organizations, and Community Advocates.

The Investigation Division investigates suspected fraud committed by insurance agents, brokers, public adjusters, bail agents, insurance companies and other individuals and entities transacting the business of insurance who perpetrate fraud against consumers.

"This case is an example of why it is difficult for legitimate businesses to compete against a company that is willing to break the law to gain an unfair advantage," said Commissioner Dave Jones. "Insurance and bonds exist to protect businesses, employees and the public and are not an optional cost of doing business."

Kaady submitted a contract bid to a California state agency to perform telecommunications, cabling and electrical work at various southern California state offices and received payments of $3,244 for partial work completed. After the contract was awarded it was discovered that the bond submitted by Kaady was from a bond company not authorized to sell bonds in California. Kaady was provided several opportunities to explain the discrepancy and submit a legitimate bond but he failed to respond.

Kaady's case is being prosecuted by the State of California Attorney General's Office and if convicted on all counts he faces a maximum of five years in county jail.

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Media Notes:

Kaady was charged with two felony counts of forgery, one felony count of forging the state seal, two felony counts of filing forged document in a public office, and two felony counts of false personation. Kaady was released on his own recognizance and will return to court on Monday, November 10, 2014 for arraignment.

No booking photo available.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.